Preparing for the Technology Roller-Coaster Journey

Tech stocks are once again poised to influence the broader markets following a disappointing forecast from Facebook parent Meta Platforms, which triggered a widespread sell-off across regions. Meta’s lower-than-expected revenue forecast and guidance for increased expenses led to a $200 billion drop in its market value and dragged down several of its competitors as concerns over the rising cost of AI weighed on investor sentiment.

Asian tech stocks mirrored this trend, with a 2% decline, while tech-heavy Taiwan and South Korean stocks both fell by 1%. All eyes are now on European tech stocks as they prepare to open for trading.

In Europe, a busy earnings day awaits traders, with a focus on banking firms. Deutsche Bank, BNP Paribas SA, and Barclays Plc are set to report their earnings, with particular attention on their net interest margin amid expectations of falling interest rates in Europe and the UK in the second half of the year.

Meanwhile, in the currency markets, the Japanese yen has breached the psychologically significant level of 155 per dollar, prompting speculation about possible intervention from Tokyo. The Bank of Japan is set to conclude its policy meeting on Friday, with all eyes on BOJ Governor Kazuo Ueda’s comments and tone to avoid a repeat of the 2022 incident when dovish remarks led to a yen plunge and costly intervention.

Key events to watch on Thursday include the Turkey rate decision, earnings reports from companies like Intel, Microsoft, Honeywell, and Alphabet, as well as updates from Deutsche Bank, BNP Paribas SA, Barclays PLC, AstraZeneca PLC, and J Sainsbury. Stay tuned for more updates on these market-moving developments.